We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion...

In the early 70s, the retail landscape of the Lisbon Metropolitan Area (LMA) was mostly confined to the Lisbon downtown. However, the retail landscape is changing at a rapid pace. In the mid-80s, two focus of retail competition (Amoreiras Shopping Center and Roma Avenue) appeared out-of-city...